Dell Q3 Revenue Falls Short: In a third-quarter report that fell below market expectations, Dell Technologies cited a slower-than-anticipated recovery in the hardware and software market, resulting in a 4% drop in its shares after the bell. The ongoing effects of the COVID-19 pandemic, which initially led to a surge in electronic device sales during lockdowns, have contributed to a slowdown in demand, particularly with increased remote work measures.
Dell’s client solutions group, encompassing its consumer and enterprise personal computer business, reported a revenue of $12.28 billion for the third quarter, reflecting an almost 11% decline compared to the previous year. Analysts note that while Dell is not the only PC vendor facing challenges, its impact is more significant due to weakness in the business PC market, a core segment for the company.
Despite challenges in the PC market, Dell’s servers and networking business experienced a 9% increase in revenue from the second quarter. This growth was fueled by customer interest in generative artificial intelligence, according to Chief Operating Officer Jeff Clarke. However, the server market is grappling with supply constraints for AI chips, particularly those made by Nvidia and used to power large language models like ChatGPT.
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Third-quarter revenue for Dell came in at $22.25 billion, falling short of estimates set at $23 billion. The company, however, raised its full-year earnings per share expectations to $6.63, with a margin of plus or minus 10 cents, compared to its prior forecast of $6.30, with a margin of plus or minus 20 cents.
While Dell faced challenges, positive results from major PC chipmakers like Intel and AMD indicate that the market’s recovery is gaining momentum, particularly as the holiday season approaches. Research firm Canalys projects that the PC market will capitalize on demand driven by AI, predicting the acceleration of adoption of AI-capable PCs from 2025 onward, with such devices accounting for approximately 60% of all PCs shipped in 2027.
Our Reader’s Queries
Why is Dell stock going down?
Dell Technologies recently released its latest financial results, which were a mixed bag. While the company saw strong profits, revenue fell short of expectations and corporate PC demand remained weak. As a result, Dell’s stock took a hit. Despite the disappointing news, Dell remains a major player in the tech industry and is sure to bounce back in the near future.
What are the financial results of Dell Q3?
Dell Technologies just released their Q3 fiscal report for 2024, revealing non-GAAP earnings of $1.88 per share. This exceeded the Zacks Consensus Estimate by 27.89%, despite a decline of 18% compared to the previous year. However, non-GAAP revenues also decreased by 10% year over year, totaling $22.25 billion and falling short of the consensus mark by 2.91%.
How is Dell doing financially?
The company’s revenue for the year was $22.3 billion, which is a 10% decrease from the previous year. The operating income generated was $1.5 billion, and the non-GAAP operating income was $2 billion, which is a 16% and 17% decrease from the previous year, respectively. The diluted earnings per share were $1.36, and the non-GAAP diluted earnings per share were $1.88.
What are the results of Dell fy24 Q3?
Dell Technologies has recently released its financial results for Q3 of fiscal 2024, reporting a revenue of $22.3 billion. Unfortunately, this marks a 10% decrease YoY and marks the fifth consecutive quarter of declining sales for the company.